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Internal Embeddedness, Headquarters Involvement, and Innovation Importance in Multinational Enterprises

In: Knowledge, Networks and Power

Author

Listed:
  • Francesco Ciabuschi
  • Henrik Dellestrand
  • Oscar Martín Martín

Abstract

For organizations upgrading their competitive base, innovation is crucial for survival and prosperity (Baumol, 2002). In the field of international business and management, innovation is considered strategically important for the ability of multinational enterprises (MNEs) to build and sustain competitive advantage, thus creating value (Franko, 1989; Hitt et al., 1996). Given these premises, and in line with recent studies, such as the one made by Garcia-Pont et al. (2009) which suggests that researchers have devoted limited attention to the effects of internal embeddedness on the organizational scope of subsidiary initiatives and competitive advantage, we investigate how subsidiary internal embeddedness, pertinent to innovation-developing activities, affects head-quarters involvement in the development process and how these two factors influence the impact and the importance of the innovation.

Suggested Citation

  • Francesco Ciabuschi & Henrik Dellestrand & Oscar Martín Martín, 2015. "Internal Embeddedness, Headquarters Involvement, and Innovation Importance in Multinational Enterprises," Palgrave Macmillan Books, in: Mats Forsgren & Ulf Holm & Jan Johanson (ed.), Knowledge, Networks and Power, chapter 12, pages 284-317, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-50882-9_12
    DOI: 10.1057/9781137508829_12
    as

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